VAT cash accounting scheme

Usually, the amount of VAT you pay HMRC is the difference between your sales invoices and purchase invoices. You have to report these figures and pay any money to HMRC even if the invoices haven't been paid.

With the Cash Accounting Scheme you:

pay VAT on your sales when your customers pay you

reclaim VAT on your purchases when you have paid your supplier

Visit GOV.UK for more information on eligibility, and how to join or leave the scheme.

VAT visits and inspections

VAT officers can visit your business to inspect your VAT records and make sure you're paying or reclaiming the right amount of VAT.

HMRC usually contact you to arrange a visit, but they can also visit without an appointment or call you about your VAT.